Lewis Brisbois Wins $1.25M in Fraud Trial

Los Angeles Partner and Commercial Litigation Practice Chair Craig Holden recently secured more than a million dollars after an eight-day jury trial in a suit that we brought on behalf of an apparel maker against its former warehouse logistics company for fraud and breach of contract.

Thread Collective Inc., the maker of popular clothing brands such as Psycho Bunny and SunIce, sued its former warehouse logistics company, Pixior LLC, and its owner for fraud and breach of contract in connection with a warehouse lien that Pixior asserted over Thread’s clothing merchandise just before the holiday season in December 2015.

Thread accused Pixior and its owner of secretly adding terms and an extra page to the parties’ contract and using this as a basis to overcharge Thread and impose an invalid warehouse lien on millions of dollars of Thread’s merchandise that Pixior threatened to sell at public auction if the bills were not paid.

Pixior cross-complained against Thread alleging false representations about exclusivity and the projected amount of business Pixior would receive from Thread.

After an eight-day jury trial, the jury deliberated about three hours before rendering a verdict for Thread. The case then went into a short bifurcated punitive damage trial against Pixior’s owner before the same jury, which awarded punitive damages. The jury also provided a complete defense verdict for Thread on the cross-complaints by Pixior.

Thread estimates the judgment may be around $1.25 million with prejudgment interest.

Holden was joined at trial by Associate Adrianna Kourafas, who was able to experience her first jury trial and conduct voir dire of the jury.

Pixior and its owner were represented by Peter Ross and Lauren Woodland of Browne George Ross.

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